Congress to the Rescue!

With the US housing market continuing to struggle, Congress passed a comprehensive bill designed to curb foreclosures and to extend additional credit to two of the nation’s leading mortgage lenders. On July 30, President Bush signed the measure into law.

Some of the key provisions of the bill include the following:

– $300 billion in loans to help distressed homeowners refinance their mortgages into more affordable 30 year fixed loans backed by the government.

– A tax break of up to $7,500 for first-time homebuyers.

– Authorizes the United States Department of the Treasury to provide an increased line of credit to Fannie Mae and Freddie Mac.

– Provides $3.9 billion in grants to states and local communities to buy and repair abandoned and foreclosed properties.